LBRY Plans to Resume its Legal Battle Against the SEC
Blockchain startup LBRY filed on July 11 a Notice of Appeal with the New Hampshire County Court to challenge a ruling from November that upheld the US Securities and Exchange Commission’s (SEC) $11 million claim.
This claim alleged that LBRY sold unregistered securities in the form of LBC tokens. According to CEO Jeremy Kauffman, the court’s ruling may set a precedent for the crypto industry in the US.
The SEC has been involved in a drawn-out legal battle with fintech firm Ripple since 2020, after accusing the company of unregistered sales of securities in the form of XRP worth $1.3 billion.
However, in July 2023, the court ruled against the commission, concluding that program sales and other distributions of the token do not constitute the offer and implementation of investment contracts.
The SEC opted to file an appeal. Another example of the US regulatory body’s reduced standing came in August, when the court granted Grayscale Investments’ petitions to convert GBTC into an ETF, contrary to the agency’s opinion.
In response, member of the US House of Representatives Warren Davidson called for the removal of Gary Gensler from the post of chairman of the department.
